Tryon: Manatee tax vote: Changes, questions

When Manatee County conducts two referendums next month, it will feel like summertime but, for proponents of the ballot measures, livin' won't be easy.

They have a tough sell.

Balloting begins June 8 and ends June 18. (The deadline to register to vote is tomorrow.)

The proposal receiving the most attention calls for increasing the sales tax in Manatee to 7 percent from 6.5 percent.

The initiative was proposed by the County Commission, under the authority of a state law that enables counties to levy -- with voter approval -- an "indigent health care sales surtax."

Manatee officials estimate the tax would generate about $23 million annually. That's what the county spends on "community health care costs," including $9 million for hospitals providing care to low-income patients.

If the sales tax is approved, the county would use part of the revenue to pay for indigent care. A new source of money is needed, supporters contend, because a fund created by the 1984 sale of Manatee Memorial will run out of dollars in 2015.

Critics question why the county will have exhausted the fund. They want to know more about how the county would spend the $14 million remaining if $9 million is paid for indigent care.

Official documents include a "Manatee County Health Care Plan," but it lacks specific information about how the revenue might be allocated and to whom.

The tax initiative, as described in county documents, is about more than funding uncompensated care provided by hospitals, doctors and others.

The plan, according to its primary author -- County Administrator Ed Hunzeker -- could trigger other actions intended to lower property-tax rates in unincorporated Manatee and its cities.

Hunzeker contends the plan could result in a 26 percent reduction in municipal property-tax rates and a 13 percent cut in rates for the unincorporated county.

(An outline of the plan, titled "How will we pay?" can be viewed at www.mymanatee.org. Click on the optimistically titled tab "Real property relief could be on the horizon.")

The proposed reductions in property tax rates would be contingent on a number of factors.

City and county tax rates must be approved yearly, for example, by elected commissions and councils -- outcomes that may be likely, if the sales tax passes, but are not guaranteed.

Anticipated increases in property values might make rate reductions easier to achieve in the future; nevertheless, Hunzeker's plan relies on revenue increases that have received little attention or scrutiny.

For instance, the plan calls for:

• An electric franchise fee. This would create a 5 percent charge on electric utility bills and generate about $11 million annually. The cost for a "typical" residential customer using 1,000 kilowatts per month, would be $52 per year.

Fees for other utilities -- including water, sewer and storm water -- would follow, the plan states.

Those fees would have to be approved by the County Commission, but the plan's charts use those potential sources of revenue to demonstrate how tax rates could be reduced.

As the plan notes, neighboring counties charge such fees; nevertheless, there will be plenty of questions in need of answers before the commissioners endorse and implement additional fees.

• Changes in the formula for funding the Sheriff's Office patrol services. Currently, the $28 million cost of patrol deputies is paid by all Manatee County property owners. "Since most city homeowners already pay for municipal police patrols, the ... plan asks unincorporated owners to pay all of the cost rather than sharing it with city homeowners."

This component explains why the proposed reduction in city tax rates is greater than the unincorporated rate. It is attractive to the cities, but will residents of the unincorporated area support this switch? Hard to say -- especially if it is buried in an overall strategy with many moving parts.

The other initiative is less likely to stir debate. It calls for Manatee County to enact an Economic Development Ad Valorem Tax Exemption (EDATE).

In 2008, 66 percent of voters statewide -- and 62 percent in Manatee -- favored amending the Florida Constitution to allow local governments to exempt up to 100 percent of property taxes, for up to 10 years, of companies that build or expand their facilities and create new jobs.

Before the EDATE program can go into effect locally, it must be approved by voters in a countywide referendum.

In 2010, Sarasota County voters approved EDATE locally, putting Manatee at a competitive disadvantage. Under normal circumstances, I'd expect EDATE to pass in Manatee. The question is: What impact will the sales tax proposal have on voters?

There are plenty of questions to ask and answer before the vote. The Herald-Tribune will conduct a Hot Topics Forum on these referendums May 29 at the Polo Grill Ballroom in Lakewood Ranch. (For information about attending the luncheon meeting, visit the website of the Lakewood Ranch Business Alliance, our partners for this event: www.lwrba.org.)

Meantime, readers with questions about either proposal can email me. I may pose the queries while moderating the forum or pose them later to county officials -- and report back on the results.